Tax Sale

AAA

DEFINITION of 'Tax Sale'

The sale of property that results when a taxpayer reaches a certain point of delinquency in his or her property tax payments. When this happens, the property owner has a right of redemption period. During this period, he or she has the opportunity to pay off the delinquent taxes in full and reclaim the property.

INVESTOPEDIA EXPLAINS 'Tax Sale'

There are a number of laws and requirements that must be followed in order for a tax sale to be valid. Adequate notice must be given to the taxpayer and the sale must also usually be open to the public, so that an adequate price is obtained for the property. In many cases, the amount received for the property must be at least equal to the total taxes that are owed.

RELATED TERMS
  1. Tax Roll

    A breakdown of all property within a given jurisdiction, such ...
  2. Taxes

    An involuntary fee levied on corporations or individuals that ...
  3. Sale

    1) In general, a transaction between two parties where the buyer ...
  4. Property Tax Deduction

    State and local property taxes that are generally deductible ...
  5. Deferred Tax Asset

    A deferred tax asset is an asset on a company's balance sheet ...
  6. Buffett Rule

    A tax rule proposed in 2011, by President Barack Obama, stating ...
Related Articles
  1. Home & Auto

    Foreclosure Opens Doors For Real Estate Investors

    Learn how to spot hot properties that you can turn around for a profit.
  2. Home & Auto

    Attention Home Buyers! Why You Need A Lawyer

    Property transactions are complex and subject to specific state/local rules. A professional can simplify the process.
  3. Personal Finance

    Real Estate Speculation In College Towns

    Is this an investing option you should consider? Find out here.
  4. Taxes

    5 Tricks For Lowering Your Property Tax

    Find out what steps you can take to reduce your bill.
  5. Taxes

    Avoid Capital Gains Tax On Your Home Sale

    If you have property to sell and want to avoid capital gains tax, a Section 1031 exchange may be the answer.
  6. Credit & Loans

    Understanding The Mortgage Payment Structure

    We explain the calculation and payment process as well as the amortization schedule of home loans.
  7. Home & Auto

    Exploring Real Estate Investments

    Discover how owning properties can give you a roof over your head or a check in your pocket.
  8. Taxes

    How are savings bonds taxed?

    Learn who is responsible for reporting U.S. EE savings bond interest for taxation and when the interest can be reported for proper taxation.
  9. Retirement

    What are the Social Security tax caps?

    Learn how the Social Security tax cap works, what percentage of income is deducted for Social Security taxes and the history of Social Security tax changes.
  10. Credit & Loans

    Are credit card rewards considered taxable income by the IRS?

    Learn about when the Internal Revenue Service considers the financial value of gifts received from credit card reward programs to be taxable income.

You May Also Like

Hot Definitions
  1. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  2. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  3. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  4. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
  5. Free Carrier - FCA

    A trade term requiring the seller to deliver goods to a named airport, terminal, or other place where the carrier operates. ...
  6. Law Of Supply And Demand

    A theory explaining the interaction between the supply of a resource and the demand for that resource. The law of supply ...
Trading Center